Spoiler: I flew past the $250,000 net worth marker! I’m a little sad that I didn’t just barely hit it and then pick up the speed the following month, but I’ll survive since it brings me that much closer to $300,000 in another few months ;)
|assets – debts
May was a pretty good month for income! I got my second bonus of the year and threw it at the mortgage. I also averaged 11,850 Fitbit steps per day for the month (about 5.41 miles/day on average or 167.71 miles total!). That’s slightly down from April’s 171 miles, but still pretty good.
Expenses: I spent $2,570 in May ignoring work reimbursable expenses, which is better than last month, but still nowhere near my spending goal for the year (under
$30,000 $24,000 in non-mortgage expenses). That puts 2013 so far at $13,430 or an average of $2,686/month. This would project forward to $32,232.
Some of my controllable expenses broke down as follows:
- $0 Clothing (woo!)
- $153 Entertainment/Social ($140 average this year)
- $27 Eating out by myself ($27 average this year)
- $141 Groceries ($174 average this year)
- $60 Work lunches ($70 average this year, $171 average this year)
- $31 Internet
- $4 Household goods
- $185 VOIPo two-year subscription
- $240 Medical and dental (ouch!)
- $20 Eyebrows
- $77 Hair cut
- $15 Toiletries
- $804 Furnishings
- $35 Fuel ($23 average this year so far, $38 average last year)
- $171 Travel – long weekend trip with some friends
This month was so-so for spending. I’m doing pretty well with the regular discretionary budget items. Furnishings is high because I bought and paid to install a ceiling fan in the master bedroom in my condo. This is going to be great for the summer! I also bought a wall clock for the front entryway. I think that the furnishings category spending is going to die down now as the only item left on my “To Buy” list is a frame for my Bachelor’s degree.
Based on some reviews online, I decided to try VOIPo for all calls that I make at home. I think that should keep my Ting minutes to the non-zero minimum (< 100). (It worked in May!)
Savings: $23,100 (up $100)
- $20,100 in an online savings account
- $600 in a checking account that gets free ATM fees anywhere in the world (for a just in case backup)
- $1,500 in a Chase checking account for 6 months ($200 bonus for opening the account!)
- $600 Condo furnishing sinking fund
- $300 in my new Health Savings Account
I’ve decided that for now, I’m going to use the funds in my HSA account to pay for health expenses. I may re-evaluate next year, but that’s what I’m going to do for now.
Investments: $104,900 (up $2,100 or +2.0%)
This includes my Roth and Traditional 401(k), my 401(k) employer matching (fully vested!), my Roth IRA, my taxable investments including stock index funds and Series I Savings Bonds.
You might question my counting my Series I Savings Bonds under Investments vs Savings. I’m counting them here mostly because of their tax-deferred until maturity nature. I also consider them part of my emergency fund, but in reality my entire monetary (i.e. non-property) net worth is my emergency fund, so that doesn’t necessitate it being part of savings.
The increase here comes from:
- May paycheck savings to taxable stock index funds, offset by a small overall loss for the month
Mortgage: $230,500 (down $12,500 or -5.1%)
My mortgage is a 5/1 ARM at 2.5%. Before the refinance, it would have been paid off November 1, 2038. ~$5 less was paid in interest with the May 1st payment versus the April 1st payment.
This is where most of the action happened this month. The May 1st regular payment saw a bit of extra principal funds from my April paycheck, but I also threw my whole bonus at the mortgage. And it now feels like I have a $230,000 mortgage instead of the $245,000 mortgage that I had last month, which is awesome!
I estimate with the extra principal payments in May that the payoff date is down to August 1, 2038, shaving 22 months off of the amortization. (Almost two years of payments gone!) AND its amortization means it should now be paid off earlier than before the refinance! I need to send an additional ~$11,900 in extra principal payments this year to stay on track with the five year payoff plan, which I am on track to hit by the end of July, at which point I will most likely divert money to taxable investments / Roth IRA instead of the mortgage.
TOTAL: $263,400 (up $15,900 or +6.4%)
I ended 2012 with a net worth of $211,300, so I’ve seen a change of $52,100 or +24.7% so far this year. I’ve set the y-axis on this graph to $315,000 so we can see how my net worth grows towards that throughout the year. I’m currently projecting hitting $300,000 around August to October and $330,000 by the end of the year, for a total yearly increase of almost $125,000.
Interesting fact: my net worth increased by $78,800 in all of 2012. Five months into 2013, it is up $52,100 or about 66% of that figure.